Georgia Commercial Real Estate Transaction Issues

Commercial real estate transactions in Georgia present a number of issues that residential real estate transactions do not. While residential real estate is bought by individual people for personal use, commercial real estate is usually bought by an entity for the purpose of conducting business. When embarking upon a commercial real estate transaction in Georgia, the following issues should be considered:

Zoning and Environmental Issues

Prior to completing a commercial real estate transaction, it is important to research local, municipal, and state requirements, as they outline the ways in which commercial real estate may be utilized. In addition, the purchasers of commercial real estate in Georgia should conduct surveys to address environmental issues, including:

The presence of mold

Flood zone information

The presence of asbestos

Underground tanks

Wetlands

The presence of hazardous materials

The presence of radon

Financial Issues

The purchasers of commercial real estate should also review the property’s financial records prior to closing. Pertinent financial records include:

Profit and loss statements

Tax returns

Insurance information

Existing leases

Property balance sheets

Title Issues

Like residential real estate, title must be examined for potential exceptions. Exceptions, which may include reservations, encumbrances, or limitations, must be researched and analyzed prior to moving forward with the transaction.

Survey Issues

Many insurance firms require that an ALTA survey be performed prior to closing. An ALTA survey is a survey conducted by a licensed surveyor in accordance with standards established by the American Land Title Association. The ALTA survey typically provides the transaction’s title insurance firm with all the information it needs to properly insure the title to a piece of commercial property, including:

Information regarding the existence of easements encumbering or benefiting the property

Water boundary locations

The existence of public street access from the property

Zoning issues affecting the property, including setback requirements

Information regarding flood zones affecting the property

Any encroachments across boundary lines or easements affecting the property

Commercial real estate transactions are quite different than residential real estate transactions, so the assistance of experienced Georgia real estate legal counsel is imperative when buying or selling commercial property to ensure that things go smoothly. At Klosinski Overstreet, LLP, we will assist you with all legal aspects of the commercial real estate purchase and sale process. Our Georgia commercial real estate attorneys have experience facilitating the purchase and sale of a number of types of commercial properties, including retail centers, office buildings, hotels, apartment complexes, and vacant property slated for development. However, it is essential that you allow sufficient time prior to your commercial real estate transaction for our experienced Georgia real estate attorneys to review all appropriate documents and address the issues discussed above. Therefore, if you plan on buying or selling commercial real estate in Georgia, please contact us as soon as possible for a consultation.